Bitcoin loses touch with the Dollar Index, U.S. stocks ahead of the Fed
Bitcoin has decoupled from its traditional correlation with the U.S. Dollar Index and stock markets ahead of the Federal Reserve's interest-rate decision. Analysts suggest this shift is driven by market focus on the failed Clarity Act regulation rather than macroeconomic indicators.
Why it matters
The breakdown of these correlations complicates risk management for institutional investors who typically hedge Bitcoin against traditional equity and currency movements.
The bitcoin BTC $75,888.13 market turned idiosyncratic ahead of Wednesday’s Federal Reserve interest-rate decision, and is no longer tracking the Dollar Index or U.S. stocks.
CoinMarketCap data show bitcoin’s short-window correlation with the index, which measures the U.S. currency’s strength against a basket of peers, has collapsed to nearly zero, while its positive link to equities has also faded.
“Bitcoin’s short-window [15-day or less] correlation to the dollar index sits at +0.08, versus -0.54 over the past 30 days. Its correlation to the S&P 500 has fallen to 0.43 from 0.75 yesterday, to the Nasdaq to 0.30 from 0.60 yesterday, and to gold to 0.28 from 0.69 over 30 days,” CoinMarketCap’s head of research, Alice Liu, said in a note shared with CoinDesk.
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